Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 18, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | COMM | |
Entity Registrant Name | CommScope Holding Company, Inc. | |
Entity Central Index Key | 1,517,228 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 191,885,515 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 1,143,979 | $ 825,400 |
Operating costs and expenses: | ||
Cost of sales | 696,888 | 532,196 |
Selling, general and administrative | 209,197 | 125,671 |
Research and development | 52,190 | 27,736 |
Amortization of purchased intangible assets | 73,616 | 44,786 |
Restructuring costs, net | 6,072 | 1,871 |
Asset impairments | 15,293 | |
Total operating costs and expenses | 1,053,256 | 732,260 |
Operating income | 90,723 | 93,140 |
Other income, net | 301 | 2,627 |
Interest expense | (72,562) | (36,329) |
Interest income | 2,579 | 1,029 |
Income before income taxes | 21,041 | 60,467 |
Income tax expense | (8,461) | (20,991) |
Net income | $ 12,580 | $ 39,476 |
Earnings per share: | ||
Basic | $ 0.07 | $ 0.21 |
Diluted | $ 0.06 | $ 0.20 |
Weighted average shares outstanding: | ||
Basic | 191,642 | 188,480 |
Diluted | 195,456 | 193,137 |
Comprehensive income: | ||
Net income | $ 12,580 | $ 39,476 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation gain (loss) | 46,284 | (29,488) |
Pension and other postretirement benefit activity | (731) | (1,587) |
Available-for-sale securities | (723) | (2,989) |
Total other comprehensive gain (loss), net of tax | 44,830 | (34,064) |
Total comprehensive income | $ 57,410 | $ 5,412 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 688,368 | $ 562,884 |
Accounts receivable, less allowance for doubtful accounts of $18,525 and $19,392, respectively | 924,216 | 833,041 |
Inventories, net | 464,462 | 441,815 |
Prepaid expenses and other current assets | 149,925 | 166,900 |
Total current assets | 2,226,971 | 2,004,640 |
Property, plant and equipment, net of accumulated depreciation of $258,890 and $243,806, respectively | 519,931 | 528,706 |
Goodwill | 2,719,300 | 2,690,636 |
Other intangible assets, net | 2,077,368 | 2,147,483 |
Other noncurrent assets | 129,337 | 131,166 |
Total assets | 7,672,907 | 7,502,631 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 388,005 | 300,829 |
Other accrued liabilities | 397,657 | 371,743 |
Current portion of long-term debt | 12,500 | 12,520 |
Total current liabilities | 798,162 | 685,092 |
Long-term debt | 5,231,513 | 5,231,131 |
Deferred income taxes | 190,941 | 202,487 |
Pension and other postretirement benefit liabilities | 40,334 | 37,102 |
Other noncurrent liabilities | 123,503 | 124,099 |
Total liabilities | $ 6,384,453 | $ 6,279,911 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value: Authorized shares: 200,000,000; Issued and outstanding shares: None at March 31, 2016 or December 31, 2015 | ||
Common stock, $.01 par value: Authorized shares: 1,300,000,000; Issued and outstanding shares: 191,863,546 and 191,368,727 at March 31, 2016 and December 31, 2015, respectively | $ 1,929 | $ 1,923 |
Additional paid-in capital | 2,227,241 | 2,216,202 |
Retained earnings (accumulated deficit) | (799,814) | (812,394) |
Accumulated other comprehensive loss | (126,848) | (171,678) |
Treasury stock, at cost: 1,094,031 shares and 986,222 shares at March 31, 2016 and December 31, 2015, respectively | (14,054) | (11,333) |
Total stockholders' equity | 1,288,454 | 1,222,720 |
Total liabilities and stockholders' equity | $ 7,672,907 | $ 7,502,631 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 18,525 | $ 19,392 |
Property, plant and equipment, net of accumulated depreciation | $ 258,890 | $ 243,806 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,300,000,000 | 1,300,000,000 |
Common stock, shares issued | 191,863,546 | 191,368,727 |
Common stock, shares outstanding | 191,863,546 | 191,368,727 |
Treasury stock, shares | 1,094,031 | 986,222 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net income | $ 12,580 | $ 39,476 |
Adjustments to reconcile net income to net cash generated by operating activities: | ||
Depreciation and amortization | 96,938 | 59,454 |
Equity-based compensation | 8,835 | 5,253 |
Deferred income taxes | (10,440) | (13,623) |
Asset impairments | 15,293 | |
Excess tax benefits from equity-based compensation | (1,381) | (10,414) |
Changes in assets and liabilities: | ||
Accounts receivable | (58,760) | (95,317) |
Inventories | (9,863) | 5,792 |
Prepaid expenses and other assets | (6,378) | (1,134) |
Accounts payable and other liabilities | 73,019 | 12,682 |
Other | (1,751) | (929) |
Net cash generated by operating activities | 118,092 | 1,240 |
Investing Activities: | ||
Additions to property, plant and equipment | (14,472) | (8,213) |
Proceeds from sale of property, plant and equipment | 3,684 | 125 |
Net purchase price adjustment | 15,355 | |
Other | 474 | 2,633 |
Net cash generated by (used in) investing activities | 5,041 | (5,455) |
Financing Activities: | ||
Long-term debt repaid | (3,146) | (2,199) |
Proceeds from the issuance of common shares under equity-based compensation plans | 1,490 | 11,999 |
Excess tax benefits from equity-based compensation | 1,381 | 10,414 |
Tax withholding payments for vested equity-based compensation awards | (2,721) | |
Net cash generated by (used in) financing activities | (2,996) | 20,214 |
Effect of exchange rate changes on cash and cash equivalents | 5,347 | (10,178) |
Change in cash and cash equivalents | 125,484 | 5,821 |
Cash and cash equivalents, beginning of period | 562,884 | 729,321 |
Cash and cash equivalents, end of period | $ 688,368 | $ 735,142 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, at Cost [Member] |
Beginning balance, Shares at Dec. 31, 2014 | 187,831,389 | |||||
Issuance of shares under equity-based compensation plans, shares | 1,578,085 | |||||
Ending balance, Shares at Mar. 31, 2015 | 189,409,474 | |||||
Beginning balance at Dec. 31, 2014 | $ 1,888 | $ 2,141,433 | $ (741,519) | $ (83,548) | $ (10,635) | |
Issuance of shares under equity-based compensation plans | 16 | 11,983 | ||||
Net income | $ 39,476 | 39,476 | ||||
Other comprehensive income (loss), net of tax | (34,064) | (34,064) | ||||
Equity-based compensation | 3,959 | |||||
Tax benefit from shares issued under equity-based compensation plans | 10,365 | |||||
Ending balance at Mar. 31, 2015 | $ 1,339,354 | $ 1,904 | 2,167,740 | (702,043) | (117,612) | (10,635) |
Beginning balance, Shares at Dec. 31, 2015 | 191,368,727 | 191,368,727 | ||||
Issuance of shares under equity-based compensation plans, shares | 602,628 | |||||
Shares surrendered under equity-based compensation plans | (107,809) | |||||
Ending balance, Shares at Mar. 31, 2016 | 191,863,546 | 191,863,546 | ||||
Beginning balance at Dec. 31, 2015 | $ 1,222,720 | $ 1,923 | 2,216,202 | (812,394) | (171,678) | (11,333) |
Issuance of shares under equity-based compensation plans | 6 | 1,483 | ||||
Net income | 12,580 | 12,580 | ||||
Other comprehensive income (loss), net of tax | 44,830 | 44,830 | ||||
Net shares surrendered under equity-based compensation plans | (2,721) | |||||
Equity-based compensation | 8,792 | |||||
Tax benefit from shares issued under equity-based compensation plans | 764 | |||||
Ending balance at Mar. 31, 2016 | $ 1,288,454 | $ 1,929 | $ 2,227,241 | $ (799,814) | $ (126,848) | $ (14,054) |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Background and Basis of Presentation | 1. BACKGROUND AND BASIS OF PRESENTATION Background CommScope Holding Company, Inc., along with its direct and indirect subsidiaries (CommScope or the Company), is a global provider of essential infrastructure solutions for communication networks. The Company’s solutions and services for wired and wireless networks enable high-bandwidth data, video and voice applications. CommScope’s global leadership position is built upon innovative technology, broad solution offerings, high-quality and cost-effective customer solutions and global manufacturing and distribution scale. On August 28, 2015, the Company acquired TE Connectivity’s Broadband Network Solutions (BNS) business in an all-cash transaction valued at approximately $3.0 billion. See Note 2 for additional discussion of the BNS acquisition. As of January 1, 2016, the Company reorganized its internal management and reporting structure as part of the integration of the BNS acquisition. The reorganization changed the information regularly reviewed by the Company’s chief operating decision maker for purposes of allocating resources and assessing performance. As a result, the Company is reporting financial performance for the 2016 fiscal year based on two new operating segments: CommScope Connectivity Solutions (CCS) and CommScope Mobility Solutions (CMS). Both CCS and CMS represent non-aggregated reportable operating segments. Prior to this change, the Company operated and reported four operating segments: Wireless, Enterprise, Broadband and BNS. All prior period amounts in these interim condensed consolidated financial statements have been recast to reflect these operating segment changes. Basis of Presentation The Condensed Consolidated Balance Sheet as of March 31, 2016, the Condensed Consolidated Statements of Operations and Comprehensive Income, Cash Flows and Stockholders’ Equity for the three months ended March 31, 2016 and 2015 are unaudited and reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The BNS results of operations that are reported in the Company’s unaudited condensed consolidated financial statements are for the fiscal period December 26, 2015 through March 25, 2016. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The significant accounting policies followed by the Company are set forth in Note 2 within the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the 2015 Annual Report). There were no changes in the Company’s significant accounting policies during the three months ended March 31, 2016. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements. Concentrations of Risk and Related Party Transactions Net sales to Anixter International Inc. and its affiliates (Anixter) accounted for 11% and 13% of the Company’s total net sales during the three months ended March 31, 2016 and 2015, respectively. Sales to Anixter primarily originate within the CCS segment. Other than Anixter, no other direct customer accounted for 10% or more of the Company’s total net sales for the three months ended March 31, 2016 or 2015. No direct customer accounted for more than 10% of the Company’s accounts receivable as of March 31, 2016. As of March 31, 2016, funds affiliated with The Carlyle Group (Carlyle) owned 31.9% of the outstanding shares of CommScope. Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over periods ranging from one to twenty-five years from the date of sale, depending upon the product subject to the warranty. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically-identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in other accrued liabilities: Three Months Ended March 31, 2016 2015 Product warranty accrual, beginning of period $ 17,964 $ 17,054 Provision for warranty claims 2,051 1,542 Warranty claims paid (2,326 ) (3,230 ) Product warranty accrual, end of period $ 17,689 $ 15,366 Commitments and Contingencies The Company is either a plaintiff or a defendant in pending legal matters in the normal course of business, including various matters assumed as part of the BNS acquisition. Management believes none of these legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of a reporting unit with goodwill may not be recoverable. During the three months ended March 31, 2016, the Company assessed goodwill for impairment due to the change in reportable segments, which also resulted in changes to several reporting units. As a result, the Company performed impairment testing for goodwill under the reporting unit structure immediately before the change and determined that no impairment existed. The Company reallocated goodwill to the new reporting units under the new reporting structure and performed preliminary impairment testing for goodwill under the new segment reporting structure immediately after the change and determined that a $15.3 million goodwill impairment existed within one of the CCS reporting units at January 1, 2016. The impairment test was performed using a discounted cash flow (DCF) valuation model. Significant assumptions in the DCF model are the annual revenue growth rate, the annual operating income margin and the discount rate used to determine the present value of the cash flow projections. The discount rate was based on the estimated weighted average cost of capital as of the test date for market participants in our reporting units’ industries. Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are carried at estimated fair value. Other than the goodwill impairment described above, there were no asset impairments identified during the three months ended March 31, 2016 or 2015. Income Taxes The effective income tax rate of 40.2% for the three months ended March 31, 2016 was higher than the statutory rate of 35% primarily due to the impact of the goodwill impairment charge for which only partial tax benefits were recorded. In addition, the effective income tax rate was also affected by the provision for state income taxes as well as losses in certain jurisdictions where the Company did not recognize tax benefits due to the likelihood of them not being realizable. These increases to the effective income tax rate were partially offset by the impact of earnings in foreign jurisdictions, which are generally taxed at rates lower than the U.S. statutory rate. The effective income tax rate of 34.7% for the three months ended March 31, 2015 was lower than the statutory rate of 35% primarily due to the impact of earnings in foreign jurisdictions. Such earnings are generally taxed at rates lower than the U.S. statutory rate. In addition, the effective income tax rate was also affected by the provision for state income taxes as well as losses in certain jurisdictions where the Company did not recognize tax benefits due to the likelihood of them not being realizable. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is based on net income divided by the weighted average number of common shares outstanding plus the dilutive effect of potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding equity-based awards (stock options, performance share units and restricted stock units). Certain outstanding equity-based awards were not included in the computation of diluted earnings per share because the effect was either antidilutive or the performance conditions were not met (2.2 million shares and 1.3 million shares for the three months ended March 31, 2016 and 2015, respectively). The following table presents the basis for the earnings per share computations: Three Months Ended March 31, 2016 2015 Numerator: Net income for basic and diluted earnings per share $ 12,580 $ 39,476 Denominator: Weighted average shares outstanding - basic 191,642 188,480 Dilutive effect of equity-based awards 3,814 4,657 Weighted average common shares outstanding - diluted 195,456 193,137 Earnings per share: Basic $ 0.07 $ 0.21 Diluted $ 0.06 $ 0.20 Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 2. ACQUISITIONS Broadband Network Solutions On August 28, 2015, the Company acquired TE Connectivity’s BNS business in an all-cash transaction. The Company has made net payments of $3,005.8 million ($2,942.1 million net of cash acquired). As of March 31, 2016, the Company had a net liability of $11.6 million payable to TE Connectivity for remaining purchase price adjustments. Net sales of $382.3 million related to the acquired business is reflected in the Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2016, and is primarily reported in the CCS segment. The purchase price for BNS was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition and any excess was allocated to goodwill. The following table summarizes the preliminary allocation of the purchase price at the date of acquisition and the subsequent measurement period adjustments (in millions): Amounts Recognized Measurement Period Amounts Recognized Cash and cash equivalents $ 63.7 $ — $ 63.7 Accounts receivable 252.9 (1.7 ) 251.2 Inventories 266.4 (11.4 ) 255.0 Other current assets 40.0 (4.0 ) 36.0 Property, plant and equipment 247.6 1.8 249.4 Goodwill 1,242.8 84.2 1,327.0 Identifiable intangible assets 1,150.0 (51.3 ) 1,098.7 Other noncurrent assets 22.3 (0.2 ) 22.1 Current liabilities (224.2 ) (12.5 ) (236.7 ) Noncurrent pension liabilities (30.5 ) 10.3 (20.2 ) Other noncurrent liabilities (27.1 ) (1.7 ) (28.8 ) Net acquisition cost $ 3,003.9 $ 13.5 $ 3,017.4 As a result of the measurement period adjustments recorded during the three months ended March 31, 2016, the Company recorded an additional $0.5 million of pretax expense, which would have been recorded during the year ended December 31, 2015 if the information relating to the valuation of certain assets and liabilities were applied at the original acquisition date. The goodwill arising from the preliminary purchase price allocation of the BNS acquisition is believed to result from the Company’s reputation in the marketplace and assembled workforce. A significant portion of the goodwill is expected to be deductible for income tax purposes. Various valuation techniques were used to estimate the fair value of the assets acquired and the liabilities assumed which use significant unobservable inputs, or Level 3 inputs as defined by the fair value hierarchy. Using these valuation approaches requires the Company to make significant estimates and assumptions. The Company is finalizing its value of identifiable intangible assets; property, plant and equipment; pension liabilities; deferred taxes; and other assets and liabilities. As additional information is obtained, adjustments will be made to the purchase price allocation. The estimated fair values are expected to change as the Company completes its valuation analyses and purchase price allocation. There were certain foreign assets acquired and liabilities assumed in the BNS acquisition for which title has not yet transferred although the consideration was paid as part of the overall purchase price discussed above. The Company expects these transfers to be fully completed during 2016 and does not anticipate any significant risks to executing such transfers. In the interim, TE Connectivity will continue to conduct the business operations, as directed by and for the sole benefit or detriment of CommScope. For the three months ended March 31, 2016, net sales related to the BNS operations that have not formally transferred were included in the Company’s consolidated net sales and represented approximately 2% of the Company’s net sales. As of March 31, 2016, the investment in these BNS operations was reported in other non-current assets on the Condensed Consolidated Balance Sheet. The total assets related to these operations represented less than 1% of the Company’s total assets as of March 31, 2016. The BNS amounts included in the following pro forma information are based on their historical results prepared on a carve-out basis of accounting and, therefore, may not be indicative of the actual results when operated as part of CommScope. The pro forma adjustments represent management’s best estimates based on information available at the time the pro forma information was prepared and may differ from the adjustments that may actually have been required. Accordingly, the pro forma financial information should not be relied upon as being indicative of the results that would have been realized had the acquisition occurred as of the date indicated or that may be achieved in the future. The following table presents unaudited pro forma condensed consolidated results of operations for CommScope for the three months ended March 31, 2015 as though the BNS acquisition had been completed as of January 1, 2014 (in millions, except per share amounts): Three months ended Revenue $ 1,250.3 Net income 35.0 Net income per diluted share 0.18 These pro forma results reflect adjustments for net interest expense for the debt related to the acquisition; depreciation expense for property, plant and equipment that has been adjusted to its estimated fair value; amortization for intangible assets with finite lives identified separate from goodwill; equity-based compensation for equity awards issued to BNS employees; and the related income tax impacts of these adjustments. Airvana On October 1, 2015, the Company acquired the assets and assumed certain liabilities of Airvana LP (Airvana), a provider of small cell solutions for wireless networks. The Company paid $44.1 million ($43.5 million net of cash acquired) and recorded a liability for $1.0 million for the remaining payment due. Airvana provides 4G LTE and 3G small cell solutions that enable communication and access to information and entertainment in challenging and high-value environments, such as office buildings, public venues and homes. Net sales of Airvana products reflected in the Condensed Consolidated Statements of Operations and Comprehensive Income were $2.7 million for the three months ended March 31, 2016 and are reported in the CMS segment. The preliminary allocation of the purchase price, based on estimates of the fair values of assets acquired and liabilities assumed, is as follows (in millions): Estimated Fair Cash and cash equivalents $ 0.6 Accounts receivable 4.2 Other assets 3.7 Property, plant and equipment 2.5 Goodwill 20.2 Identifiable intangible assets 19.1 Less: Liabilities assumed (5.2 ) Net acquisition cost $ 45.1 The goodwill arising from the purchase price allocation of the Airvana acquisition is believed to result from the company’s reputation in the marketplace and assembled workforce and is expected to be deductible for income tax purposes. As additional information is obtained, adjustments may be made to the preliminary purchase price allocation. The Company is still finalizing the estimated fair value of certain of the tangible and intangible assets acquired. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 3. GOODWILL As a result of the change in segments, goodwill was reallocated from the previous segments to the new segments. The following table presents goodwill after the reallocation to the new reportable segments (in millions): CCS CMS Total Goodwill, gross, as of January 1, 2016 $ 1,986.6 $ 899.7 $ 2,886.3 Adjustments to preliminary purchase price 11.9 0.5 12.4 Foreign exchange 31.0 0.6 31.6 Goodwill, gross, as of March 31, 2016 2,029.5 900.8 2,930.3 Accumulated impairment charges as of January 1, 2016 (36.2 ) (159.5 ) (195.7 ) Impairment charges (15.3 ) — (15.3 ) Accumulated impairment charges as of March 31, 2016 (51.5 ) (159.5 ) (211.0 ) Goodwill, net, as of March 31, 2016 $ 1,978.0 $ 741.3 $ 2,719.3 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | 4. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Inventories March 31, 2016 December 31, 2015 Raw materials $ 127,240 $ 114,329 Work in process 125,776 131,030 Finished goods 211,446 196,456 $ 464,462 $ 441,815 Investments The Company owns shares of Hydrogenics Corporation (Hydrogenics), a publicly traded company that supplies hydrogen generators and hydrogen-based power modules and fuel cells for various uses. These shares are accounted for as available-for-sale securities and are carried at fair value with changes in fair value recorded, net of tax, in other comprehensive income (loss). Investments are recorded in other noncurrent assets on the Condensed Consolidated Balance Sheets. The following table presents information related to the Company’s investment in Hydrogenics: March 31, 2016 December 31, 2015 Shares owned 1,283 1,332 Cost basis $ 961 $ 997 Fair value $ 10,496 $ 11,683 Pretax unrealized gain in accumulated other comprehensive income (loss) $ 9,535 $ 10,685 The following table provides information related to the sale of shares in Hydrogenics: Three Months Ended 2016 2015 Shares sold 49 172 Proceeds received $ 400 $ 2,493 Pretax gain realized $ 364 $ 2,363 Gains on the sale of Hydrogenics shares are recorded in other income, net on the Condensed Consolidated Statements of Operations and Comprehensive Income. Other Accrued Liabilities March 31, 2016 December 31, 2015 Compensation and employee benefit liabilities $ 97,594 $ 108,852 Deferred revenue 24,994 23,811 Product warranty accrual 17,689 17,964 Accrued interest 66,127 12,468 Restructuring reserve 20,850 24,480 Income taxes payable 42,264 38,417 Value-added taxes payable 14,140 24,880 Accrued professional fees 12,454 14,303 Other 101,545 106,568 $ 397,657 $ 371,743 Accumulated Other Comprehensive Loss The following table presents changes in accumulated other comprehensive income (AOCI), net of tax, and accumulated other comprehensive loss (AOCL), net of tax: Three Months Ended 2016 2015 Foreign currency translation Balance, beginning of period $ (160,620 ) $ (80,483 ) Other comprehensive income (loss) 46,284 (29,366 ) Amounts reclassified from AOCL — (122 ) Balance, end of period $ (114,336 ) $ (109,971 ) Pension and other postretirement benefit activity Balance, beginning of period $ (17,567 ) $ (14,957 ) Amounts reclassified from AOCL (731 ) (1,587 ) Balance, end of period $ (18,298 ) $ (16,544 ) Available-for-sale securities Balance, beginning of period $ 6,509 $ 11,892 Other comprehensive loss (494 ) (1,528 ) Amounts reclassified from AOCI (229 ) (1,461 ) Balance, end of period $ 5,786 $ 8,903 Net AOCL, end of period $ (126,848 ) $ (117,612 ) Amounts reclassified from net AOCL related to foreign currency translation and available-for-sale securities are recorded in other income, net in the Condensed Consolidated Statements of Operations and Comprehensive Income. Pension and other postretirement benefit plan amounts reclassified from net AOCL are included in the computation of net periodic benefit income and are primarily recorded in cost of sales and selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income. Cash Flow Information Three Months Ended March 31, 2016 2015 Cash paid during the period for: Income taxes, net of refunds $ 15,087 $ 34,075 Interest $ 16,057 $ 7,272 |
Financing
Financing | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Financing | 5. FINANCING March 31, 2016 December 31, 2015 6.00% senior notes due June 2025 $ 1,500,000 $ 1,500,000 5.50% senior notes due June 2024 650,000 650,000 5.00% senior notes due June 2021 650,000 650,000 Senior PIK toggle notes due June 2020 536,630 536,630 4.375% senior secured notes due June 2020 500,000 500,000 Senior secured term loan due December 2022 1,243,750 1,246,875 Senior secured term loan due January 2018 261,875 261,875 Senior secured revolving credit facility expires May 2020 — — Other — 19 Total face vaue of debt $ 5,342,255 $ 5,345,399 Less: Original issue discount, net of amortization (3,987 ) (4,234 ) Less: Debt issuance costs, net of amortization (94,255 ) (97,514 ) Less: Current portion (12,500 ) (12,520 ) Total long-term debt $ 5,231,513 $ 5,231,131 See Note 6 in the Notes to Consolidated Financial Statements in the 2015 Annual Report for additional information on the terms and conditions of the 6.00% senior notes (the 2025 Notes), the 5.50% senior notes (the 2024 Notes), the 5.00% senior notes (the 2021 Notes), the 6.625%/7.375% senior payment-in-kind toggle notes (the senior PIK toggle notes), the 4.375% senior secured notes (the 2020 Notes) and the senior secured term loans and credit facility. Senior Secured Credit Facilities During the three months ended March 31, 2016, the Company repaid $3.1 million of its senior secured term loans. No portion of the senior secured term loans was reflected as a current portion of long-term debt as of March 31, 2016 related to the potentially required excess cash flow payment because the amount that may be payable in 2017, if any, cannot currently be reliably estimated. There was no excess cash flow payment required in 2016 related to 2015. During the three months ended March 31, 2016, the Company did not borrow under its revolving credit facility. As of March 31, 2016, the Company had availability of approximately $322.3 million under the asset-based revolving credit facility, after giving effect to borrowing base limitations and outstanding letters of credit. Other Matters The Company’s non-guarantor subsidiaries held approximately $2,835 million, or 37%, of total assets and approximately $497 million, or 8%, of total liabilities as of March 31, 2016 and accounted for approximately $500 million, or 44%, of net sales for the three months ended March 31, 2016. As of December 31, 2015, the non-guarantor subsidiaries held approximately $2,848 million, or 38%, of total assets and approximately $468 million, or 8%, of total liabilities. For the three months ended March 31, 2015, the non-guarantor subsidiaries accounted for approximately $375 million, or 45%, of net sales. All amounts presented exclude intercompany balances. CommScope, Inc., a direct wholly owned subsidiary of the Company, is a guarantor of the 2025 Notes and the issuer of each of the 2024 Notes, the 2021 Notes and the 2020 Notes. The balance sheet and income statement amounts for CommScope, Inc. are substantially identical to those of the Company other than interest expense and total debt. Interest expense for CommScope, Inc. does not reflect the interest expense incurred in connection with the senior PIK toggle notes. For the three month periods ended March 31, 2016 and 2015, interest expense related to the senior PIK toggle notes was $9.3 million ($5.5 million net of tax) and $9.5 million ($6.1 million net of tax), respectively. Total debt for CommScope, Inc. and its subsidiaries as of March 31, 2016 was $4,713.9 million, which does not include the senior PIK toggle notes. The weighted average effective interest rate on outstanding borrowings, including the amortization of debt issuance costs and original issue discount, was 5.50% at both March 31, 2016 and December 31, 2015. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 6. DERIVATIVES AND HEDGING ACTIVITIES The Company uses forward contracts to hedge a portion of its balance sheet re-measurement risk and to hedge certain planned foreign currency expenditures. As of March 31, 2016, the Company had outstanding foreign exchange contracts with maturities of up to seven months and aggregate notional values of $302 million (based on exchange rates as of March 31, 2016). Unrealized gains and losses resulting from these contracts are recognized in other income, net and partially offset corresponding foreign exchange gains and losses on the balances and expenditures being hedged. These instruments are not held for speculative or trading purposes and are not designated as hedges for hedge accounting and are marked to market each period through earnings. The following table presents the balance sheet location and fair value of the Company’s derivatives: Fair Value of Asset (Liability) Balance Sheet Location March 31, 2016 December 31, 2015 Foreign currency contracts Prepaid expenses and $ 3,044 $ 1,051 Foreign currency contracts Other accrued liabilities (1,815 ) (5,945 ) Total derivatives not designated as hedging instruments $ 1,229 $ (4,894 ) The pretax impact of these foreign currency forward contracts, both matured and outstanding, on the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows: Foreign Currency Forward Contracts Location of Gain (Loss) Gain (Loss) Recognized Three Months Ended March 31, 2016 Other income, net $ 1,163 Three Months Ended March 31, 2015 Other income, net $ (4,800 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, available-for-sale securities, debt instruments and foreign currency contracts. For cash and cash equivalents, trade receivables and trade payables, the carrying amounts of these financial instruments as of March 31, 2016 and December 31, 2015 were considered representative of their fair values due to their short terms to maturity. The fair value of the Company’s available-for-sale securities was based on quoted market prices. The fair values of the Company’s debt instruments and foreign currency contracts were based on indicative quotes. Fair value measurements using quoted prices in active markets for identical assets and liabilities fall within Level 1 of the fair value hierarchy, measurements using significant other observable inputs fall within Level 2, and measurements using significant unobservable inputs fall within Level 3. The carrying amounts, estimated fair values and valuation input levels of the Company’s available-for-sale securities, foreign currency contracts and debt instruments as of March 31, 2016 and December 31, 2015, are as follows: March 31, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value Valuation Assets: Available-for-sale securities $ 10,496 $ 10,496 $ 11,683 $ 11,683 Level 1 Foreign currency contracts 3,044 3,044 1,051 1,051 Level 2 Liabilities: 6.00% senior notes due 2025 1,500,000 1,511,250 1,500,000 1,430,700 Level 2 5.50% senior notes due 2024 650,000 654,030 650,000 617,500 Level 2 5.00% senior notes due 2021 650,000 653,250 650,000 619,125 Level 2 Senior PIK toggle notes due 2020 536,630 550,690 536,630 544,679 Level 2 4.375% senior secured notes due 2020 500,000 510,000 500,000 500,000 Level 2 Senior secured term loan due 2022, at par 1,243,750 1,243,750 1,246,875 1,243,727 Level 2 Senior secured term loan due 2018, at par 261,875 261,377 261,875 260,068 Level 2 Foreign currency contracts 1,815 1,815 5,945 5,945 Level 2 Non-Recurring Fair Value Measurements During the three months ended March 31, 2016, the Company recorded a pretax goodwill impairment charge of $15.3 million due to the change in reportable segments as described in Note 1. The valuation supporting the goodwill impairment charge is based on Level 3 valuation inputs. These fair value estimates are based on pertinent information available to management as of the date made. Although management is not aware of any factors that would significantly affect these fair value estimates, such amounts have not been comprehensively revalued for purposes of these financial statements since those dates and current estimates of fair value may differ significantly from the amounts presented. |
Segments and Geographic Informa
Segments and Geographic Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | 8. SEGMENTS AND GEOGRAPHIC INFORMATION As of January 1, 2016, the Company reorganized its internal management and reporting structure as part of the integration of the BNS acquisition. The reorganization changed the information regularly reviewed by the Company’s chief operating decision maker for purposes of allocating resources and assessing performance. As a result, the Company is reporting financial performance for the 2016 fiscal year based on two new operating segments: CommScope Connectivity Solutions and CommScope Mobility Solutions. Both CCS and CMS represent non-aggregated reportable operating segments. All prior period amounts below have been recast to reflect these operating segment changes. The CCS segment provides connectivity and network intelligence for indoor and outdoor network applications. Indoor network solutions are found in commercial buildings and in the network core, which includes data centers, central offices and cable television headends. These solutions include optical fiber and twisted pair structured cabling applications, intelligent infrastructure software, network rack and cabinet enclosures, patch cords and panels, modular data centers, network design services, central office connectivity and equipment and headend solutions for the network core. Outdoor network solutions are found in access networks and include coaxial cabling and fiber-optic connectivity solutions, which include a robust portfolio of fiber optic connectors and fiber management systems. The CMS segment provides merchant radio frequency (RF) wireless network connectivity solutions and DAS and small cell solutions to enable carriers’ 2G, 3G and 4G networks. These solutions, marketed primarily under the Andrew brand, enable wireless operators to deploy macro cell site, metro cell site, DAS and small cell solutions to meet coverage and capacity requirements. The CMS segment focuses on all aspects of the radio access network (RAN) from the macro through the metro, to the indoor layer. Macro cell site solutions can be found at wireless tower sites and on rooftops and include base station antennas, microwave antennas, hybrid fiber-feeder and power cables, coaxial cables, connectors and filters. Metro cell solutions can be found outdoors on street poles and on other urban structures and include RF delivery and connectivity solutions, equipment housing and concealment. These fully integrated outdoor systems consist of specialized antennas, filters/combiners, backhaul solutions, intra-system cabling and power distribution, all minimized to fit an urban environment. The DAS and small cell solutions allow wireless operators to increase spectral efficiency and thereby extend and enhance cellular coverage and capacity in challenging network conditions such as commercial buildings, urban areas, stadiums and transportation systems. The following table provides summary financial information by reportable segment (in millions): March 31, 2016 December 31, 2015 Identifiable segment-related assets: CCS $ 4,695.7 $ 4,642.0 CMS 2,248.3 2,258.9 Total identifiable segment-related assets 6,944.0 6,900.9 Reconciliation to total assets: Cash and cash equivalents 688.4 562.9 Deferred income tax assets 40.5 38.8 Total assets $ 7,672.9 $ 7,502.6 The following table provides net sales, operating income, depreciation and amortization by reportable segment (in millions): Three Months Ended 2016 2015 Net sales: CCS $ 687.0 $ 329.1 CMS 457.0 496.3 Consolidated net sales $ 1,144.0 $ 825.4 Operating income: CCS (1) $ 50.0 $ 28.7 CMS (2) 40.7 64.4 Consolidated operating income $ 90.7 $ 93.1 Depreciation: CCS $ 12.9 $ 4.4 CMS 6.7 7.2 Consolidated depreciation $ 19.6 $ 11.6 Amortization (3): CCS $ 48.2 $ 21.7 CMS 25.4 23.1 Consolidated amortization $ 73.6 $ 44.8 (1) Operating income for the three months ended March 31, 2016 includes a goodwill impairment charge of $15.3 million. Operating income for the three months ended March 31, 2016 and 2015 includes integration and transaction costs of $14.1 million and $5.4 million, respectively. Operating income for the three months ended March 31, 2016 and 2015 includes restructuring charges of $1.1 million and $0.1 million, respectively. (2) Operating income for the three months ended March 31, 2016 and 2015 includes integration and transaction costs of $1.8 million and $6.0 million, respectively. Operating income for the three months ended March 31, 2016 and 2015 includes restructuring charges of $5.0 million and $1.8 million, respectively. (3) Excludes amortization of debt issuance costs and original issue discount. Sales to customers located outside of the United States comprised 48.5% and 53.6% of total net sales for the three months ended March 31, 2016 and 2015, respectively. Sales by geographic region, based on the destination of product shipments, were as follows (in millions): Three Months Ended March 31, 2016 2015 United States $ 588.8 $ 383.1 Europe, Middle East and Africa 218.3 158.9 Asia Pacific 240.7 189.9 Central and Latin America 66.3 66.7 Canada 29.9 26.8 Consolidated net sales $ 1,144.0 $ 825.4 |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | 9. RESTRUCTURING COSTS Prior to the acquisition of the BNS business, the Company initiated restructuring actions to realign and lower its cost structure primarily through workforce reductions and other cost reduction initiatives, including the cessation of manufacturing operations at various facilities. Production capacity from these facilities has been shifted to other existing facilities or unaffiliated suppliers. These actions are referred to as cost alignment restructuring actions. Following the acquisition of BNS in 2015, the Company initiated a series of restructuring actions to integrate the BNS operations (BNS integration restructuring actions) to achieve cost and production synergies. All charges related to these restructuring actions are reported in restructuring costs, net. The Company’s net pretax restructuring charges, by segment, were as follows: Three Months Ended March 31, 2016 2015 CCS $ 1,109 $ 110 CMS 4,963 1,761 Total $ 6,072 $ 1,871 Employee-related costs include the expected severance costs and related benefits as well as one-time severance benefits that are accrued over the remaining period employees are required to work in order to receive such benefits. Lease termination costs relate to the discounted cost of unused leased facilities, net of anticipated sub-rental income. Fixed asset related costs include non-cash impairments or fixed asset disposals associated with restructuring actions in addition to the cash costs to uninstall, pack, ship and reinstall manufacturing equipment and the costs to prepare the receiving facility to accommodate relocated equipment. These costs are expensed as incurred. The activity within the liability established for the cost alignment restructuring actions was as follows: Employee- Related Costs Lease Termination Costs Fixed Asset Related Costs Total Balance as of December 31, 2015 $ 1,005 $ 7,370 $ — $ 8,375 Additional charge (credit) recorded (4 ) 90 (203 ) (117 ) Cash paid (364 ) (524 ) — (888 ) Consideration received — — 3,656 3,656 Foreign exchange and other non-cash items 22 — (3,453 ) (3,431 ) Balance as of March 31, 2016 $ 659 $ 6,936 $ — $ 7,595 The Company has recognized restructuring charges of $88.7 million since January 2011 for cost alignment restructuring actions. Additional pretax costs of $1.0 million to $2.0 million are expected to be incurred to complete these previously announced initiatives. Cash payments of $2.0 million to $3.0 million are expected during the remainder of 2016 with additional payments of $6.0 million to $7.0 million between 2017 and 2022. The activity within the liability established for the BNS integration restructuring actions was as follows: Employee- Related Costs Lease Termination Costs Fixed Asset Related Costs Total Balance as of December 31, 2015 $ 28,714 $ — $ — $ 28,714 Additional charge recorded 3,836 — 2,353 6,189 Cash paid (7,140 ) — (432 ) (7,572 ) Foreign exchange and other non-cash items 19 — (1,921 ) (1,902 ) Balance as of March 31, 2016 $ 25,429 $ — $ — $ 25,429 The BNS integration actions include the planned closure of two facilities in the U.S. and one international facility. The Company has recognized restructuring charges of $30.0 million since the acquisition date for BNS integration actions. Additional pretax costs of $0.2 million to $0.3 million are expected to be incurred to complete the previously announced BNS integration initiatives. Cash payments of $17.0 million to $18.0 million are expected during the remainder of 2016 with additional payments of $7.0 million to $8.0 million between 2017 and 2018. Additional restructuring charges related to the BNS restructuring actions are expected and the resulting amounts may be material. Restructuring reserves related to all actions were included in the Company’s Condensed Consolidated Balance Sheets as follows: March 31, 2016 December 31, 2015 Other accrued liabilities $ 20,850 $ 24,480 Other noncurrent liabilities 12,174 12,609 Total liability $ 33,024 $ 37,089 As a result of restructuring and consolidation actions, the Company owns unutilized real estate at various facilities in the U.S. and internationally. The Company is attempting to sell or lease this unutilized space. Additional impairment charges may be incurred related to these or other excess assets. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 10. EMPLOYEE BENEFIT PLANS Pension Benefits Three Months Ended March 31, U.S. Plans Non-U.S. Plans 2016 2015 2016 2015 Service cost $ — $ — $ 1,596 $ 107 Interest cost 1,620 1,625 1,751 1,313 Recognized actuarial loss 236 169 28 1 Expected return on plan assets (1,750 ) (1,880 ) (2,294 ) (1,597 ) Net periodic benefit cost (income) $ 106 $ (86 ) $ 1,081 $ (176 ) Other Postretirement Benefits Three Months Ended March 31, U.S. Plans 2016 2015 Service cost $ 1 $ 7 Interest cost 135 161 Recognized actuarial gain (346 ) (283 ) Amortization of prior service credits (1,055 ) (2,457 ) Net periodic benefit income $ (1,265 ) $ (2,572 ) The Company contributed $1.0 million to the defined benefit pension plans and postretirement benefit plans during the three months ended March 31, 2016. During the remainder of 2016, the Company anticipates making additional contributions of approximately $1.9 million to the U.S. plans and $8.2 million to the non-U.S. plans. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY Equity-Based Compensation Plans As of March 31, 2016, $81.9 million of unrecognized compensation costs related to unvested stock options, restricted stock unit awards (RSUs) and performance share units (PSUs) are expected to be recognized over a remaining weighted average period of 1.8 years. There were no significant capitalized equity-based compensation costs at March 31, 2016. In March 2016, the Company modified certain equity-based compensation awards to extend the exercise period in the case of retirement, death or disability. This modification resulted in a change in the fair value of certain stock option awards. The incremental compensation cost that resulted from the modification was $1.6 million and it was recognized fully during the three months ended March 31, 2016. The following table shows a summary of the equity-based compensation expense included in the Condensed Consolidated Statements of Operations and Comprehensive Income: Three Months Ended 2016 2015 Selling, general and administrative $ 6,716 $ 4,010 Cost of sales 1,192 699 Research and development 927 544 Total equity-based compensation expense $ 8,835 $ 5,253 Stock Options Stock options are awards that allow the recipient to purchase shares of the Company’s common stock at a fixed price. Stock options are granted at an exercise price equal to the Company’s stock price at the date of grant. These awards generally vest over one to five years following the grant date and have a contractual term of ten years. The following table summarizes the stock option activity (in thousands, except per share amounts): Shares Weighted Average Option Exercise Price Per Share Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding as of December 31, 2015 7,458 $ 8.81 Granted 374 $ 24.94 $ 12.03 Exercised (262 ) $ 6.39 Forfeited (195 ) $ 5.73 $ 3.87 Outstanding as of March 31, 2016 7,375 $ 9.80 $ 135,004 Exercisable at March 31, 2016 6,476 $ 7.41 $ 4.53 $ 132,861 Expected to vest 894 $ 26.99 $ 2,133 The exercise prices of outstanding options at March 31, 2016 were in the following ranges: Options Outstanding Options Exercisable Range of Exercise Prices Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Per Share Shares (in thousands) Weighted Average Share $2.96 to $5.35 398 3.0 $ 2.96 398 $ 2.96 $5.36 to $5.67 591 5.9 $ 5.57 564 $ 5.57 $5.68 to $8.54 3,903 4.8 $ 5.74 3,903 $ 5.74 $8.55 to $8.90 1,101 4.4 $ 8.62 1,101 $ 8.62 $8.91 to $23.00 527 7.8 $ 22.54 490 $ 22.85 $23.01 to $33.12 855 9.2 $ 28.09 20 $ 28.65 $2.96 to $33.12 7,375 5.5 $ 9.80 6,476 $ 7.41 The Company uses the Black-Scholes model to estimate the fair value of stock option awards at the date of grant. Key inputs and assumptions used in the model include the grant date fair value of common stock, exercise price of the award, the expected option term, stock price volatility, the risk-free interest rate and the Company’s projected dividend yield. The Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in estimating the fair values of its stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards. Subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. The following table presents the weighted average assumptions used to estimate the fair value of stock option awards granted. Three Months Ended March 31, 2016 2015 Expected option term (in years) 6.0 6.0 Risk-free interest rate 1.4 % 1.6 % Expected volatility 50.0 % 43.0 % Expected dividend yield — % — % Weighted average exercise price $ 24.94 $ 30.76 Weighted average fair value at grant date $ 12.03 $ 13.25 Performance Share Units PSUs are stock awards in which the number of shares ultimately received by the employee depends on Company performance against specified targets. Such awards vest over three years and the number of shares issued can vary from 0% to 150% of the number of PSUs granted depending on performance. The fair value of each PSU is determined on the date of grant based on the Company’s stock price. Over the performance period, the number of shares that are expected to be issued is adjusted upward or downward based upon the probable achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized will be based on the final performance metrics compared to the targets specified in the grants. The following table summarizes the PSU activity (in thousands, except per share data): Performance Share Units Weighted Average Grant Date Fair Value Per Share Outstanding and unvested as of December 31, 2015 175 $ 30.76 Granted 268 $ 24.94 Outstanding and unvested as of March 31, 2016 443 $ 27.24 Restricted Stock Units RSUs entitle the holder to shares of common stock after a vesting period that generally ranges from one to three years. The fair value of the awards is determined on the grant date based on the Company’s stock price. The following table summarizes the RSU activity (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Outstanding and unvested as of December 31, 2015 1,567 $ 29.37 Granted 1,589 $ 24.94 Vested and shares issued (341 ) $ 30.87 Forfeited (44 ) $ 28.22 Outstanding and unvested as of March 31, 2016 2,771 $ 26.66 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. SUBSEQUENT EVENTS On April 27, 2016, the Company’s Board of Directors approved the issuance of a redemption notice for $300 million of the Company’s senior PIK toggle notes. The redemption is expected to be completed in June 2016 pursuant to the terms of the related indenture and result in a cash charge related to the redemption premium of $9.9 million and a non-cash write-off of debt issuance costs of $3.5 million. |
Background and Basis of Prese19
Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Balance Sheet as of March 31, 2016, the Condensed Consolidated Statements of Operations and Comprehensive Income, Cash Flows and Stockholders’ Equity for the three months ended March 31, 2016 and 2015 are unaudited and reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The BNS results of operations that are reported in the Company’s unaudited condensed consolidated financial statements are for the fiscal period December 26, 2015 through March 25, 2016. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and are presented in accordance with the applicable requirements of Regulation S-X. Accordingly, these financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The significant accounting policies followed by the Company are set forth in Note 2 within the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the 2015 Annual Report). There were no changes in the Company’s significant accounting policies during the three months ended March 31, 2016. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements. |
Concentrations of Risk and Related Party Transactions | Concentrations of Risk and Related Party Transactions Net sales to Anixter International Inc. and its affiliates (Anixter) accounted for 11% and 13% of the Company’s total net sales during the three months ended March 31, 2016 and 2015, respectively. Sales to Anixter primarily originate within the CCS segment. Other than Anixter, no other direct customer accounted for 10% or more of the Company’s total net sales for the three months ended March 31, 2016 or 2015. No direct customer accounted for more than 10% of the Company’s accounts receivable as of March 31, 2016. As of March 31, 2016, funds affiliated with The Carlyle Group (Carlyle) owned 31.9% of the outstanding shares of CommScope. |
Product Warranties | Product Warranties The Company recognizes a liability for the estimated claims that may be paid under its customer warranty agreements to remedy potential deficiencies of quality or performance of the Company’s products. These product warranties extend over periods ranging from one to twenty-five years from the date of sale, depending upon the product subject to the warranty. The Company records a provision for estimated future warranty claims as cost of sales based upon the historical relationship of warranty claims to sales and specifically-identified warranty issues. The Company bases its estimates on assumptions that are believed to be reasonable under the circumstances and revises its estimates, as appropriate, when events or changes in circumstances indicate that revisions may be necessary. Such revisions may be material. The following table summarizes the activity in the product warranty accrual, included in other accrued liabilities: Three Months Ended March 31, 2016 2015 Product warranty accrual, beginning of period $ 17,964 $ 17,054 Provision for warranty claims 2,051 1,542 Warranty claims paid (2,326 ) (3,230 ) Product warranty accrual, end of period $ 17,689 $ 15,366 |
Commitments and Contingencies | Commitments and Contingencies The Company is either a plaintiff or a defendant in pending legal matters in the normal course of business, including various matters assumed as part of the BNS acquisition. Management believes none of these legal matters will have a material adverse effect on the Company’s business or financial condition upon final disposition. In addition, the Company is subject to various federal, state, local and foreign laws and regulations governing the use, discharge, disposal and remediation of hazardous materials. Compliance with current laws and regulations has not had, and is not expected to have, a materially adverse effect on the Company’s financial condition or results of operations. |
Asset Impairments | Asset Impairments Goodwill is tested for impairment annually or at other times if events have occurred or circumstances exist that indicate the carrying value of a reporting unit with goodwill may not be recoverable. During the three months ended March 31, 2016, the Company assessed goodwill for impairment due to the change in reportable segments, which also resulted in changes to several reporting units. As a result, the Company performed impairment testing for goodwill under the reporting unit structure immediately before the change and determined that no impairment existed. The Company reallocated goodwill to the new reporting units under the new reporting structure and performed preliminary impairment testing for goodwill under the new segment reporting structure immediately after the change and determined that a $15.3 million goodwill impairment existed within one of the CCS reporting units at January 1, 2016. The impairment test was performed using a discounted cash flow (DCF) valuation model. Significant assumptions in the DCF model are the annual revenue growth rate, the annual operating income margin and the discount rate used to determine the present value of the cash flow projections. The discount rate was based on the estimated weighted average cost of capital as of the test date for market participants in our reporting units’ industries. Property, plant and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable, based on the undiscounted cash flows expected to be derived from the use and ultimate disposition of the assets. Assets identified as impaired are carried at estimated fair value. Other than the goodwill impairment described above, there were no asset impairments identified during the three months ended March 31, 2016 or 2015. |
Income Taxes | Income Taxes The effective income tax rate of 40.2% for the three months ended March 31, 2016 was higher than the statutory rate of 35% primarily due to the impact of the goodwill impairment charge for which only partial tax benefits were recorded. In addition, the effective income tax rate was also affected by the provision for state income taxes as well as losses in certain jurisdictions where the Company did not recognize tax benefits due to the likelihood of them not being realizable. These increases to the effective income tax rate were partially offset by the impact of earnings in foreign jurisdictions, which are generally taxed at rates lower than the U.S. statutory rate. The effective income tax rate of 34.7% for the three months ended March 31, 2015 was lower than the statutory rate of 35% primarily due to the impact of earnings in foreign jurisdictions. Such earnings are generally taxed at rates lower than the U.S. statutory rate. In addition, the effective income tax rate was also affected by the provision for state income taxes as well as losses in certain jurisdictions where the Company did not recognize tax benefits due to the likelihood of them not being realizable. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is based on net income divided by the weighted average number of common shares outstanding plus the dilutive effect of potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding equity-based awards (stock options, performance share units and restricted stock units). Certain outstanding equity-based awards were not included in the computation of diluted earnings per share because the effect was either antidilutive or the performance conditions were not met (2.2 million shares and 1.3 million shares for the three months ended March 31, 2016 and 2015, respectively). The following table presents the basis for the earnings per share computations: Three Months Ended March 31, 2016 2015 Numerator: Net income for basic and diluted earnings per share $ 12,580 $ 39,476 Denominator: Weighted average shares outstanding - basic 191,642 188,480 Dilutive effect of equity-based awards 3,814 4,657 Weighted average common shares outstanding - diluted 195,456 193,137 Earnings per share: Basic $ 0.07 $ 0.21 Diluted $ 0.06 $ 0.20 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers |
Background and Basis of Prese20
Background and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Activity in Product Warranty Accrual, Included in Other Accrued Liabilities | The following table summarizes the activity in the product warranty accrual, included in other accrued liabilities: Three Months Ended March 31, 2016 2015 Product warranty accrual, beginning of period $ 17,964 $ 17,054 Provision for warranty claims 2,051 1,542 Warranty claims paid (2,326 ) (3,230 ) Product warranty accrual, end of period $ 17,689 $ 15,366 |
Summary of Earnings, Weighted Average Common Shares and Potential Common Shares Outstanding | The following table presents the basis for the earnings per share computations: Three Months Ended March 31, 2016 2015 Numerator: Net income for basic and diluted earnings per share $ 12,580 $ 39,476 Denominator: Weighted average shares outstanding - basic 191,642 188,480 Dilutive effect of equity-based awards 3,814 4,657 Weighted average common shares outstanding - diluted 195,456 193,137 Earnings per share: Basic $ 0.07 $ 0.21 Diluted $ 0.06 $ 0.20 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Proforma Results of Operations | The following table presents unaudited pro forma condensed consolidated results of operations for CommScope for the three months ended March 31, 2015 as though the BNS acquisition had been completed as of January 1, 2014 (in millions, except per share amounts): Three months ended Revenue $ 1,250.3 Net income 35.0 Net income per diluted share 0.18 |
BNS [Member] | |
Allocation of Purchase Price | The purchase price for BNS was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition and any excess was allocated to goodwill. The following table summarizes the preliminary allocation of the purchase price at the date of acquisition and the subsequent measurement period adjustments (in millions): Amounts Recognized Measurement Period Amounts Recognized Cash and cash equivalents $ 63.7 $ — $ 63.7 Accounts receivable 252.9 (1.7 ) 251.2 Inventories 266.4 (11.4 ) 255.0 Other current assets 40.0 (4.0 ) 36.0 Property, plant and equipment 247.6 1.8 249.4 Goodwill 1,242.8 84.2 1,327.0 Identifiable intangible assets 1,150.0 (51.3 ) 1,098.7 Other noncurrent assets 22.3 (0.2 ) 22.1 Current liabilities (224.2 ) (12.5 ) (236.7 ) Noncurrent pension liabilities (30.5 ) 10.3 (20.2 ) Other noncurrent liabilities (27.1 ) (1.7 ) (28.8 ) Net acquisition cost $ 3,003.9 $ 13.5 $ 3,017.4 |
Airvana LP [Member] | |
Allocation of Purchase Price | The preliminary allocation of the purchase price, based on estimates of the fair values of assets acquired and liabilities assumed, is as follows (in millions): Estimated Fair Cash and cash equivalents $ 0.6 Accounts receivable 4.2 Other assets 3.7 Property, plant and equipment 2.5 Goodwill 20.2 Identifiable intangible assets 19.1 Less: Liabilities assumed (5.2 ) Net acquisition cost $ 45.1 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill After Reallocation to New Reportable Segments | The following table presents goodwill after the reallocation to the new reportable segments (in millions): CCS CMS Total Goodwill, gross, as of January 1, 2016 $ 1,986.6 $ 899.7 $ 2,886.3 Adjustments to preliminary purchase price 11.9 0.5 12.4 Foreign exchange 31.0 0.6 31.6 Goodwill, gross, as of March 31, 2016 2,029.5 900.8 2,930.3 Accumulated impairment charges as of January 1, 2016 (36.2 ) (159.5 ) (195.7 ) Impairment charges (15.3 ) — (15.3 ) Accumulated impairment charges as of March 31, 2016 (51.5 ) (159.5 ) (211.0 ) Goodwill, net, as of March 31, 2016 $ 1,978.0 $ 741.3 $ 2,719.3 |
Supplemental Financial Statem23
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventories March 31, 2016 December 31, 2015 Raw materials $ 127,240 $ 114,329 Work in process 125,776 131,030 Finished goods 211,446 196,456 $ 464,462 $ 441,815 |
Information Related to the Investment in Hydrogenics | The following table presents information related to the Company’s investment in Hydrogenics: March 31, 2016 December 31, 2015 Shares owned 1,283 1,332 Cost basis $ 961 $ 997 Fair value $ 10,496 $ 11,683 Pretax unrealized gain in accumulated other comprehensive income (loss) $ 9,535 $ 10,685 |
Summary of Information Related to Sale of Shares | The following table provides information related to the sale of shares in Hydrogenics: Three Months Ended 2016 2015 Shares sold 49 172 Proceeds received $ 400 $ 2,493 Pretax gain realized $ 364 $ 2,363 |
Other Accrued Liabilities | Other Accrued Liabilities March 31, 2016 December 31, 2015 Compensation and employee benefit liabilities $ 97,594 $ 108,852 Deferred revenue 24,994 23,811 Product warranty accrual 17,689 17,964 Accrued interest 66,127 12,468 Restructuring reserve 20,850 24,480 Income taxes payable 42,264 38,417 Value-added taxes payable 14,140 24,880 Accrued professional fees 12,454 14,303 Other 101,545 106,568 $ 397,657 $ 371,743 |
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table presents changes in accumulated other comprehensive income (AOCI), net of tax, and accumulated other comprehensive loss (AOCL), net of tax: Three Months Ended 2016 2015 Foreign currency translation Balance, beginning of period $ (160,620 ) $ (80,483 ) Other comprehensive income (loss) 46,284 (29,366 ) Amounts reclassified from AOCL — (122 ) Balance, end of period $ (114,336 ) $ (109,971 ) Pension and other postretirement benefit activity Balance, beginning of period $ (17,567 ) $ (14,957 ) Amounts reclassified from AOCL (731 ) (1,587 ) Balance, end of period $ (18,298 ) $ (16,544 ) Available-for-sale securities Balance, beginning of period $ 6,509 $ 11,892 Other comprehensive loss (494 ) (1,528 ) Amounts reclassified from AOCI (229 ) (1,461 ) Balance, end of period $ 5,786 $ 8,903 Net AOCL, end of period $ (126,848 ) $ (117,612 ) |
Cash Flow Information | Cash Flow Information Three Months Ended March 31, 2016 2015 Cash paid during the period for: Income taxes, net of refunds $ 15,087 $ 34,075 Interest $ 16,057 $ 7,272 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Debt | March 31, 2016 December 31, 2015 6.00% senior notes due June 2025 $ 1,500,000 $ 1,500,000 5.50% senior notes due June 2024 650,000 650,000 5.00% senior notes due June 2021 650,000 650,000 Senior PIK toggle notes due June 2020 536,630 536,630 4.375% senior secured notes due June 2020 500,000 500,000 Senior secured term loan due December 2022 1,243,750 1,246,875 Senior secured term loan due January 2018 261,875 261,875 Senior secured revolving credit facility expires May 2020 — — Other — 19 Total face vaue of debt $ 5,342,255 $ 5,345,399 Less: Original issue discount, net of amortization (3,987 ) (4,234 ) Less: Debt issuance costs, net of amortization (94,255 ) (97,514 ) Less: Current portion (12,500 ) (12,520 ) Total long-term debt $ 5,231,513 $ 5,231,131 |
Derivatives and Hedging Activ25
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance Sheet Location and Fair Value of Company | The following table presents the balance sheet location and fair value of the Company’s derivatives: Fair Value of Asset (Liability) Balance Sheet Location March 31, 2016 December 31, 2015 Foreign currency contracts Prepaid expenses and $ 3,044 $ 1,051 Foreign currency contracts Other accrued liabilities (1,815 ) (5,945 ) Total derivatives not designated as hedging instruments $ 1,229 $ (4,894 ) |
Pretax Impact of Foreign Currency Forward Contracts, Both Matured and Outstanding, not Designated as Hedging Instruments | The pretax impact of these foreign currency forward contracts, both matured and outstanding, on the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows: Foreign Currency Forward Contracts Location of Gain (Loss) Gain (Loss) Recognized Three Months Ended March 31, 2016 Other income, net $ 1,163 Three Months Ended March 31, 2015 Other income, net $ (4,800 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Available-for-Sale Securities, Foreign Currency Contracts and Debt Instruments | The carrying amounts, estimated fair values and valuation input levels of the Company’s available-for-sale securities, foreign currency contracts and debt instruments as of March 31, 2016 and December 31, 2015, are as follows: March 31, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value Valuation Assets: Available-for-sale securities $ 10,496 $ 10,496 $ 11,683 $ 11,683 Level 1 Foreign currency contracts 3,044 3,044 1,051 1,051 Level 2 Liabilities: 6.00% senior notes due 2025 1,500,000 1,511,250 1,500,000 1,430,700 Level 2 5.50% senior notes due 2024 650,000 654,030 650,000 617,500 Level 2 5.00% senior notes due 2021 650,000 653,250 650,000 619,125 Level 2 Senior PIK toggle notes due 2020 536,630 550,690 536,630 544,679 Level 2 4.375% senior secured notes due 2020 500,000 510,000 500,000 500,000 Level 2 Senior secured term loan due 2022, at par 1,243,750 1,243,750 1,246,875 1,243,727 Level 2 Senior secured term loan due 2018, at par 261,875 261,377 261,875 260,068 Level 2 Foreign currency contracts 1,815 1,815 5,945 5,945 Level 2 |
Segments and Geographic Infor27
Segments and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment | The following table provides summary financial information by reportable segment (in millions): March 31, 2016 December 31, 2015 Identifiable segment-related assets: CCS $ 4,695.7 $ 4,642.0 CMS 2,248.3 2,258.9 Total identifiable segment-related assets 6,944.0 6,900.9 Reconciliation to total assets: Cash and cash equivalents 688.4 562.9 Deferred income tax assets 40.5 38.8 Total assets $ 7,672.9 $ 7,502.6 |
Summary of Net Sales and Operating Income, Depreciation and Amortization by Reportable Segment | The following table provides net sales, operating income, depreciation and amortization by reportable segment (in millions): Three Months Ended 2016 2015 Net sales: CCS $ 687.0 $ 329.1 CMS 457.0 496.3 Consolidated net sales $ 1,144.0 $ 825.4 Operating income: CCS (1) $ 50.0 $ 28.7 CMS (2) 40.7 64.4 Consolidated operating income $ 90.7 $ 93.1 Depreciation: CCS $ 12.9 $ 4.4 CMS 6.7 7.2 Consolidated depreciation $ 19.6 $ 11.6 Amortization (3): CCS $ 48.2 $ 21.7 CMS 25.4 23.1 Consolidated amortization $ 73.6 $ 44.8 (1) Operating income for the three months ended March 31, 2016 includes a goodwill impairment charge of $15.3 million. Operating income for the three months ended March 31, 2016 and 2015 includes integration and transaction costs of $14.1 million and $5.4 million, respectively. Operating income for the three months ended March 31, 2016 and 2015 includes restructuring charges of $1.1 million and $0.1 million, respectively. (2) Operating income for the three months ended March 31, 2016 and 2015 includes integration and transaction costs of $1.8 million and $6.0 million, respectively. Operating income for the three months ended March 31, 2016 and 2015 includes restructuring charges of $5.0 million and $1.8 million, respectively. (3) Excludes amortization of debt issuance costs and original issue discount. |
Summary of Sales by Geographic Region, Based on Destination of Product Shipments | Sales by geographic region, based on the destination of product shipments, were as follows (in millions): Three Months Ended March 31, 2016 2015 United States $ 588.8 $ 383.1 Europe, Middle East and Africa 218.3 158.9 Asia Pacific 240.7 189.9 Central and Latin America 66.3 66.7 Canada 29.9 26.8 Consolidated net sales $ 1,144.0 $ 825.4 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Company's Net Pretax Restructuring Charges | The Company’s net pretax restructuring charges, by segment, were as follows: Three Months Ended March 31, 2016 2015 CCS $ 1,109 $ 110 CMS 4,963 1,761 Total $ 6,072 $ 1,871 |
Activity within Liability Established for Restructuring Actions, Included in Other Accrued Liabilities | The activity within the liability established for the cost alignment restructuring actions was as follows: Employee- Related Costs Lease Termination Costs Fixed Asset Related Costs Total Balance as of December 31, 2015 $ 1,005 $ 7,370 $ — $ 8,375 Additional charge (credit) recorded (4 ) 90 (203 ) (117 ) Cash paid (364 ) (524 ) — (888 ) Consideration received — — 3,656 3,656 Foreign exchange and other non-cash items 22 — (3,453 ) (3,431 ) Balance as of March 31, 2016 $ 659 $ 6,936 $ — $ 7,595 The activity within the liability established for the BNS integration restructuring actions was as follows: Employee- Related Costs Lease Termination Costs Fixed Asset Related Costs Total Balance as of December 31, 2015 $ 28,714 $ — $ — $ 28,714 Additional charge recorded 3,836 — 2,353 6,189 Cash paid (7,140 ) — (432 ) (7,572 ) Foreign exchange and other non-cash items 19 — (1,921 ) (1,902 ) Balance as of March 31, 2016 $ 25,429 $ — $ — $ 25,429 |
Restructuring Reserves Related to Condensed Consolidated Balance Sheets | Restructuring reserves related to all actions were included in the Company’s Condensed Consolidated Balance Sheets as follows: March 31, 2016 December 31, 2015 Other accrued liabilities $ 20,850 $ 24,480 Other noncurrent liabilities 12,174 12,609 Total liability $ 33,024 $ 37,089 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Defined Benefit Pension Plan and Other Postretirement Defined Benefit Plan | Pension Benefits Three Months Ended March 31, U.S. Plans Non-U.S. Plans 2016 2015 2016 2015 Service cost $ — $ — $ 1,596 $ 107 Interest cost 1,620 1,625 1,751 1,313 Recognized actuarial loss 236 169 28 1 Expected return on plan assets (1,750 ) (1,880 ) (2,294 ) (1,597 ) Net periodic benefit cost (income) $ 106 $ (86 ) $ 1,081 $ (176 ) Other Postretirement Benefits Three Months Ended March 31, U.S. Plans 2016 2015 Service cost $ 1 $ 7 Interest cost 135 161 Recognized actuarial gain (346 ) (283 ) Amortization of prior service credits (1,055 ) (2,457 ) Net periodic benefit income $ (1,265 ) $ (2,572 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of the Equity-Based Compensation Expense Included in the Condensed Consolidated Statements of Operations and Comprehensive Income | The following table shows a summary of the equity-based compensation expense included in the Condensed Consolidated Statements of Operations and Comprehensive Income: Three Months Ended 2016 2015 Selling, general and administrative $ 6,716 $ 4,010 Cost of sales 1,192 699 Research and development 927 544 Total equity-based compensation expense $ 8,835 $ 5,253 |
Summary of Stock Option Activity | The following table summarizes the stock option activity (in thousands, except per share amounts): Shares Weighted Average Option Exercise Price Per Share Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Outstanding as of December 31, 2015 7,458 $ 8.81 Granted 374 $ 24.94 $ 12.03 Exercised (262 ) $ 6.39 Forfeited (195 ) $ 5.73 $ 3.87 Outstanding as of March 31, 2016 7,375 $ 9.80 $ 135,004 Exercisable at March 31, 2016 6,476 $ 7.41 $ 4.53 $ 132,861 Expected to vest 894 $ 26.99 $ 2,133 |
Summary of Exercise Price | The exercise prices of outstanding options at March 31, 2016 were in the following ranges: Options Outstanding Options Exercisable Range of Exercise Prices Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Per Share Shares (in thousands) Weighted Average Share $2.96 to $5.35 398 3.0 $ 2.96 398 $ 2.96 $5.36 to $5.67 591 5.9 $ 5.57 564 $ 5.57 $5.68 to $8.54 3,903 4.8 $ 5.74 3,903 $ 5.74 $8.55 to $8.90 1,101 4.4 $ 8.62 1,101 $ 8.62 $8.91 to $23.00 527 7.8 $ 22.54 490 $ 22.85 $23.01 to $33.12 855 9.2 $ 28.09 20 $ 28.65 $2.96 to $33.12 7,375 5.5 $ 9.80 6,476 $ 7.41 |
Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option | The following table presents the weighted average assumptions used to estimate the fair value of stock option awards granted. Three Months Ended March 31, 2016 2015 Expected option term (in years) 6.0 6.0 Risk-free interest rate 1.4 % 1.6 % Expected volatility 50.0 % 43.0 % Expected dividend yield — % — % Weighted average exercise price $ 24.94 $ 30.76 Weighted average fair value at grant date $ 12.03 $ 13.25 |
Performance Share Units (PSUs) [Member] | |
Summary of PSU Activity | The following table summarizes the PSU activity (in thousands, except per share data): Performance Share Units Weighted Average Grant Date Fair Value Per Share Outstanding and unvested as of December 31, 2015 175 $ 30.76 Granted 268 $ 24.94 Outstanding and unvested as of March 31, 2016 443 $ 27.24 |
Restricted Stock Units (RSUs) [Member] | |
Summary of RSU Activity | The following table summarizes the RSU activity (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Outstanding and unvested as of December 31, 2015 1,567 $ 29.37 Granted 1,589 $ 24.94 Vested and shares issued (341 ) $ 30.87 Forfeited (44 ) $ 28.22 Outstanding and unvested as of March 31, 2016 2,771 $ 26.66 |
Background and Basis of Prese31
Background and Basis of Presentation - Additional Information (Detail) shares in Millions | Aug. 28, 2015USD ($) | Mar. 31, 2016USD ($)SegmentCustomershares | Mar. 31, 2015USD ($)Customershares | Dec. 31, 2015Segment |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Number of reportable segments | Segment | 2 | 4 | ||
Product warranty term | These product warranties extend over periods ranging from [one to twenty-five] years from the date of sale, depending upon the product subject to the warranty. | |||
Goodwill impairment charges | $ 15,300,000 | |||
Pretax impairment charges other than goodwill | $ 0 | $ 0 | ||
Effective income tax rate | 40.20% | 34.70% | ||
Statutory tax rate | 35.00% | 35.00% | ||
Amount of outstanding equity based awards not included in computation of diluted earnings per share | shares | 2.2 | 1.3 | ||
Carlyle [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Ownership percentage | 31.90% | |||
BNS [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Cash paid for acquired assets and assumed liabilities | $ 2,942,100,000 | |||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Anixter International Inc. [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Concentration risk percentage | 11.00% | 13.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Other Customers [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Number of customer accounted for more than 10% | Customer | 0 | 0 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Other Customers [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Number of customer accounted for more than 10% | Customer | 0 |
Background and Basis of Prese32
Background and Basis of Presentation - Summary of Activity in Product Warranty Accrual, Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Product warranty accrual, beginning of period | $ 17,964 | $ 17,054 |
Provision for warranty claims | 2,051 | 1,542 |
Warranty claims paid | (2,326) | (3,230) |
Product warranty accrual, end of period | $ 17,689 | $ 15,366 |
Background and Basis of Prese33
Background and Basis of Presentation - Summary of Earnings, Weighted Average Common Shares and Potential Common Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||
Net income for basic and diluted earnings per share | $ 12,580 | $ 39,476 |
Denominator: | ||
Weighted average shares outstanding - basic | 191,642 | 188,480 |
Dilutive effect of equity-based awards | 3,814 | 4,657 |
Weighted average common shares outstanding - diluted | 195,456 | 193,137 |
Earnings per share: | ||
Basic | $ 0.07 | $ 0.21 |
Diluted | $ 0.06 | $ 0.20 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 01, 2015 | Aug. 28, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Business Acquisition [Line Items] | ||||
Net sales | $ 1,143,979 | $ 825,400 | ||
BNS [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred, amount | $ 3,005,800 | |||
Cash paid for acquired assets and assumed liabilities | $ 2,942,100 | |||
Net sales | 382,300 | |||
Business combination separately recognized transactions liabilities recognized | 11,600 | |||
Additional pre-tax expense, provisional net measurement adjustment | 500 | |||
Airvana LP [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred, amount | $ 44,100 | |||
Cash paid for acquired assets and assumed liabilities | 43,500 | |||
Net sales | $ 2,700 | |||
Business combination separately recognized transactions liabilities recognized | $ 1,000 | |||
BNS Delayed Close [Member] | Sales Revenue, Net [Member] | Business Unit Concentration Risk [Member] | ||||
Business Acquisition [Line Items] | ||||
Concentration risk percentage | 2.00% | |||
BNS Delayed Close [Member] | Maximum [Member] | Assets, Total [Member] | Business Unit Concentration Risk [Member] | ||||
Business Acquisition [Line Items] | ||||
Concentration risk percentage | 1.00% |
Acquisitions - Purchase Price o
Acquisitions - Purchase Price of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 3 Months Ended | 7 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Aug. 28, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,719,300 | $ 2,719,300 | $ 2,690,636 | |
Goodwill | $ (12,400) | |||
BNS [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 63,700 | |||
Accounts receivable | 252,900 | |||
Inventories | 266,400 | |||
Other current assets | 40,000 | |||
Property, plant and equipment | 247,600 | |||
Goodwill | 1,242,800 | |||
Identifiable intangible assets | 1,150,000 | |||
Other noncurrent assets | 22,300 | |||
Current liabilities | (224,200) | |||
Noncurrent pension liabilities | (30,500) | |||
Other noncurrent liabilities | (27,100) | |||
Net acquisition cost | 3,003,900 | |||
BNS [Member] | Accounting Standards Update 2015-16 [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 63,700 | |||
Accounts receivable | 251,200 | |||
Inventories | 255,000 | |||
Other current assets | 36,000 | |||
Property, plant and equipment | 249,400 | |||
Goodwill | 1,327,000 | |||
Identifiable intangible assets | 1,098,700 | |||
Other noncurrent assets | 22,100 | |||
Current liabilities | (236,700) | |||
Noncurrent pension liabilities | (20,200) | |||
Other noncurrent liabilities | (28,800) | |||
Net acquisition cost | $ 3,017,400 | |||
Cash and cash equivalents | 0 | |||
Accounts receivable | (1,700) | |||
Inventories | (11,400) | |||
Other current assets | (4,000) | |||
Property, plant and equipment | 1,800 | |||
Goodwill | 84,200 | |||
Identifiable intangible assets | (51,300) | |||
Other noncurrent assets | (200) | |||
Current liabilities | (12,500) | |||
Noncurrent pension liabilities | 10,300 | |||
Other noncurrent liabilities | (1,700) | |||
Net acquisition cost | $ 13,500 |
Acquisitions - Summary of ProFo
Acquisitions - Summary of ProForma Results of Operations (Detail) - BNS [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($)$ / shares | |
Business Acquisitions Pro Forma Information [Line Items] | |
Revenue | $ 1,250.3 |
Net income | $ 35 |
Net income per diluted share | $ / shares | $ 0.18 |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Oct. 01, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,719,300 | $ 2,690,636 | |
Airvana LP [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 600 | ||
Accounts receivable | 4,200 | ||
Other current assets | 3,700 | ||
Property, plant and equipment | 2,500 | ||
Goodwill | 20,200 | ||
Identifiable intangible assets | 19,100 | ||
Less: Liabilities assumed | (5,200) | ||
Net acquisition cost | $ 45,100 |
Goodwill - Goodwill After Reall
Goodwill - Goodwill After Reallocation to New Reportable Segments (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | $ 2,886,300 | |
Adjustments to preliminary purchase price | 12,400 | |
Foreign exchange | 31,600 | |
Goodwill, gross, Ending balance | 2,930,300 | |
Accumulated impairment charges, Beginning balance | (195,700) | |
Impairment charges | (15,300) | |
Accumulated impairment charges, Ending balance | (211,000) | |
Goodwill, net | 2,719,300 | $ 2,690,636 |
CCS [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | 1,986,600 | |
Adjustments to preliminary purchase price | 11,900 | |
Foreign exchange | 31,000 | |
Goodwill, gross, Ending balance | 2,029,500 | |
Accumulated impairment charges, Beginning balance | (36,200) | |
Impairment charges | (15,300) | |
Accumulated impairment charges, Ending balance | (51,500) | |
Goodwill, net | 1,978,000 | |
CMS [Member] | ||
Goodwill [Line Items] | ||
Goodwill, gross, Beginning balance | 899,700 | |
Adjustments to preliminary purchase price | 500 | |
Foreign exchange | 600 | |
Goodwill, gross, Ending balance | 900,800 | |
Accumulated impairment charges, Beginning balance | (159,500) | |
Accumulated impairment charges, Ending balance | (159,500) | |
Goodwill, net | $ 741,300 |
Supplemental Financial Statem39
Supplemental Financial Statement Information - Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 127,240 | $ 114,329 |
Work in process | 125,776 | 131,030 |
Finished goods | 211,446 | 196,456 |
Inventories, net | $ 464,462 | $ 441,815 |
Supplemental Financial Statem40
Supplemental Financial Statement Information - Information Related to the Investment in Hydrogenics (Detail) - Hydrogenics [Member] - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Shares owned | 1,283 | 1,332 |
Cost basis | $ 961 | $ 997 |
Fair value | 10,496 | 11,683 |
Pretax unrealized gain in accumulated other comprehensive income (loss) | $ 9,535 | $ 10,685 |
Supplemental Financial Statem41
Supplemental Financial Statement Information - Summary of Information Related to Sale of Shares (Detail) - Hydrogenics [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Shares sold | 49,000 | 172,000 |
Proceeds received | $ 400 | $ 2,493 |
Pretax gain realized | $ 364 | $ 2,363 |
Supplemental Financial Statem42
Supplemental Financial Statement Information - Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Compensation and employee benefit liabilities | $ 97,594 | $ 108,852 | ||
Deferred revenue | 24,994 | 23,811 | ||
Product warranty accrual | 17,689 | 17,964 | $ 15,366 | $ 17,054 |
Accrued interest | 66,127 | 12,468 | ||
Restructuring reserve | 20,850 | 24,480 | ||
Income taxes payable | 42,264 | 38,417 | ||
Value-added taxes payable | 14,140 | 24,880 | ||
Accrued professional fees | 12,454 | 14,303 | ||
Other | 101,545 | 106,568 | ||
Other Accrued Liabilities | $ 397,657 | $ 371,743 |
Supplemental Financial Statem43
Supplemental Financial Statement Information - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 1,222,720 | ||
Other comprehensive income (loss) | 44,830 | $ (34,064) | |
Amounts reclassified from AOCL | (731) | (1,587) | |
Ending balance | 1,288,454 | 1,339,354 | |
Net AOCL, end of period | (126,848) | (117,612) | $ (171,678) |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (160,620) | (80,483) | |
Other comprehensive income (loss) | 46,284 | (29,366) | |
Amounts reclassified from AOCL | (122) | ||
Ending balance | (114,336) | (109,971) | |
Pension and Other Postretirement Benefit Activity [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (17,567) | (14,957) | |
Amounts reclassified from AOCL | (731) | (1,587) | |
Ending balance | (18,298) | (16,544) | |
Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 6,509 | 11,892 | |
Other comprehensive income (loss) | (494) | (1,528) | |
Amounts reclassified from AOCI | (229) | (1,461) | |
Ending balance | $ 5,786 | $ 8,903 |
Supplemental Financial Statem44
Supplemental Financial Statement Information - Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 15,087 | $ 34,075 |
Interest | $ 16,057 | $ 7,272 |
Financing - Summary of Debt (De
Financing - Summary of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Other | $ 19 | |
Total face value of debt | $ 5,342,255 | 5,345,399 |
Less: Original issue discount, net of amortization | (3,987) | (4,234) |
Less: Debt issuance costs, net of amortization | (94,255) | (97,514) |
Less: Current portion | (12,500) | (12,520) |
Total long-term debt | 5,231,513 | 5,231,131 |
6.00% Senior Notes Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,500,000 | 1,500,000 |
5.00% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 650,000 | 650,000 |
5.50% Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 650,000 | 650,000 |
Senior PIK Toggle Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior PIK toggle notes due June 2020 | 536,630 | 536,630 |
4.375% Senior Secured Notes Due June 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 500,000 | 500,000 |
Senior Secured Term Loans Due 2018, at Par [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loans | 261,875 | 261,875 |
Senior Secured Term Loan Due December 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loans | 1,243,750 | 1,246,875 |
Senior Secured Revolving Credit Facility Expires May 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured revolving credit facility expires May 2020 | $ 0 | $ 0 |
Financing - Summary of Debt (Pa
Financing - Summary of Debt (Parenthetical) (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
6.00% Senior Notes Due June 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 15, 2025 | |
Interest rate | 6.00% | 6.00% |
5.00% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 15, 2021 | |
Interest rate | 5.00% | 5.00% |
5.50% Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 15, 2024 | |
Interest rate | 5.50% | 5.50% |
Senior PIK Toggle Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 1, 2020 | |
4.375% Senior Secured Notes Due June 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 15, 2020 | |
Interest rate | 4.375% | 4.375% |
Senior Secured Term Loans Due 2018, at Par [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 14, 2018 | |
Senior Secured Term Loan Due December 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 31, 2022 | |
Senior Secured Revolving Credit Facility Expires May 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | May 31, 2020 |
Financing - Additional Informat
Financing - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Repayment of senior secured loan | $ 3,146,000 | $ 2,199,000 | |
Total assets | 7,672,907,000 | $ 7,502,631,000 | |
Total liabilities | 6,384,453,000 | $ 6,279,911,000 | |
Net sales | 1,143,979,000 | 825,400,000 | |
Interest expense | 72,562,000 | 36,329,000 | |
Long term debt | $ 4,713,900,000 | ||
Weighted average effective interest rate | 5.50% | 5.50% | |
Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Total assets | $ 2,835,000,000 | $ 2,848,000,000 | |
Total liabilities | 497,000,000 | $ 468,000,000 | |
Net sales | $ 500,000,000 | $ 375,000,000 | |
Assets, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Concentration risk percentage | 37.00% | 38.00% | |
Liabilities, Total [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Concentration risk percentage | 8.00% | 8.00% | |
Sales Revenue, Net [Member] | Non Guarantor Subsidiaries Concentration Risk [Member] | |||
Debt Instrument [Line Items] | |||
Concentration risk percentage | 44.00% | 45.00% | |
6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | 6.00% | |
5.50% Senior Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | 5.50% | |
5.00% Senior Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.00% | 5.00% | |
4.375% Senior Secured Notes Due June 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.375% | 4.375% | |
Amendment [Member] | Asset Based Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured credit facilities current borrowed amount | $ 0 | ||
Senior secured credit facilities current borrowing capacity | 322,300,000 | ||
Senior Payment In Kind Toggle Notes [Member] | CommScope Holding Company, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense | 9,300,000 | $ 9,500,000 | |
Interest expense, Net of tax | 5,500,000 | $ 6,100,000 | |
Senior Secured Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of senior secured loan | $ 3,100,000 | ||
Senior Notes [Member] | 6.00% Senior Notes Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.00% | ||
Senior Notes [Member] | 5.50% Senior Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | ||
Senior Notes [Member] | 5.00% Senior Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.00% | ||
Senior Notes [Member] | 4.375% Senior Secured Notes Due June 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.375% | ||
Minimum [Member] | Senior PIK Toggle Notes Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.625% | ||
Maximum [Member] | Senior PIK Toggle Notes Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.375% |
Derivatives and Hedging Activ48
Derivatives and Hedging Activities - Additional Information (Detail) - Foreign Currency Contracts [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 302 |
Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Maturities ranging | 7 months |
Derivatives and Hedging Activ49
Derivatives and Hedging Activities - Balance Sheet Location and Fair Value of the Company's Derivatives (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives not designated as hedging instruments | $ 1,229 | $ (4,894) |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | 3,044 | 1,051 |
Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency contracts | $ (1,815) | $ (5,945) |
Derivatives and Hedging Activ50
Derivatives and Hedging Activities - Pretax Impact of Foreign Currency Forward Contracts, Both Matured and Outstanding, not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income, Net [Member] | Foreign Currency Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized on Foreign Currency Forward Contracts | $ 1,163 | $ (4,800) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts, Estimated Fair Values and Valuation Input Levels of the Company's Available-for-Sale Securities, Foreign Currency Contracts and Debt Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
6.00% Senior Notes Due June 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,500,000 | $ 1,500,000 |
5.50% Senior Notes Due 2024 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
5.00% Senior Notes Due 2021 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
Senior PIK Toggle Notes Due 2020 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior PIK toggle notes due 2020 | 536,630 | 536,630 |
Senior Secured Term Loans Due 2018, at Par [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured debt | 261,875 | 261,875 |
Carrying Amount [Member] | Other Assets Noncurrent [Member] | Hydrogenics [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 10,496 | 11,683 |
Carrying Amount [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 3,044 | 1,051 |
Carrying Amount [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 1,815 | 5,945 |
Carrying Amount [Member] | 6.00% Senior Notes Due June 2025 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,500,000 | 1,500,000 |
Carrying Amount [Member] | 5.50% Senior Notes Due 2024 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
Carrying Amount [Member] | 5.00% Senior Notes Due 2021 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
Carrying Amount [Member] | Senior PIK Toggle Notes Due 2020 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior PIK toggle notes due 2020 | 536,630 | 536,630 |
Carrying Amount [Member] | 4.375% Senior Secured Notes Due 2020 [ Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured debt | 500,000 | 500,000 |
Carrying Amount [Member] | Senior Secured Term Loan Due 2022, at Par [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured debt | 1,243,750 | 1,246,875 |
Carrying Amount [Member] | Senior Secured Term Loans Due 2018, at Par [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured debt | 261,875 | 261,875 |
Fair Value [Member] | Level 1 [Member] | Other Assets Noncurrent [Member] | Hydrogenics [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 10,496 | 11,683 |
Fair Value [Member] | Level 2 [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 3,044 | 1,051 |
Fair Value [Member] | Level 2 [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency contracts | 1,815 | 5,945 |
Fair Value [Member] | Level 2 [Member] | 6.00% Senior Notes Due June 2025 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,511,250 | 1,430,700 |
Fair Value [Member] | Level 2 [Member] | 5.50% Senior Notes Due 2024 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 654,030 | 617,500 |
Fair Value [Member] | Level 2 [Member] | 5.00% Senior Notes Due 2021 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 653,250 | 619,125 |
Fair Value [Member] | Level 2 [Member] | Senior PIK Toggle Notes Due 2020 [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior PIK toggle notes due 2020 | 550,690 | 544,679 |
Fair Value [Member] | Level 2 [Member] | 4.375% Senior Secured Notes Due 2020 [ Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 510,000 | 500,000 |
Fair Value [Member] | Level 2 [Member] | Senior Secured Term Loan Due 2022, at Par [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured term loans | 1,243,750 | 1,243,727 |
Fair Value [Member] | Level 2 [Member] | Senior Secured Term Loans Due 2018, at Par [Member] | Long Term Debt Noncurrent [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured term loans | $ 261,377 | $ 260,068 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Goodwill impairment charges | $ 15.3 |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Goodwill impairment charges | $ 15.3 |
Segments and Geographic Infor53
Segments and Geographic Information - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 2 | |
Sales Revenue, Net [Member] | Customers Located Outside of the U.S [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 48.50% | 53.60% |
Segments and Geographic Infor54
Segments and Geographic Information - Summary of Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 7,672,907 | $ 7,502,631 | ||
Cash and cash equivalents | 688,368 | 562,884 | $ 735,142 | $ 729,321 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 6,944,000 | 6,900,900 | ||
Operating Segments [Member] | CCS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 4,695,700 | 4,642,000 | ||
Operating Segments [Member] | CMS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,248,300 | 2,258,900 | ||
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 688,400 | 562,900 | ||
Deferred income tax assets | $ 40,500 | $ 38,800 |
Segments and Geographic Infor55
Segments and Geographic Information - Summary of Net Sales and Operating Income, Depreciation and Amortization by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,143,979 | $ 825,400 |
Operating income | 90,723 | 93,140 |
Depreciation | 19,600 | 11,600 |
Amortization | 73,616 | 44,786 |
CCS [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 687,000 | 329,100 |
Operating income | 50,000 | 28,700 |
Depreciation | 12,900 | 4,400 |
Amortization | 48,200 | 21,700 |
CMS [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 457,000 | 496,300 |
Operating income | 40,700 | 64,400 |
Depreciation | 6,700 | 7,200 |
Amortization | $ 25,400 | $ 23,100 |
Segments and Geographic Infor56
Segments and Geographic Information - Summary of Net Sales and Operating Income, Depreciation and Amortization by Reportable Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Restructuring costs, net | $ 6,072 | $ 1,871 |
Goodwill impairment charges | 15,300 | |
CCS [Member] | ||
Segment Reporting Information [Line Items] | ||
Integration and transaction costs | 14,100 | 5,400 |
Restructuring costs, net | 1,109 | 110 |
Goodwill impairment charges | 15,300 | |
CMS [Member] | ||
Segment Reporting Information [Line Items] | ||
Integration and transaction costs | 1,800 | 6,000 |
Restructuring costs, net | $ 4,963 | $ 1,761 |
Segments and Geographic Infor57
Segments and Geographic Information - Summary of Sales by Geographic Region, Based on Destination of Product Shipments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 1,143,979 | $ 825,400 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 588,800 | 383,100 |
Europe, Middle East and Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 218,300 | 158,900 |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 240,700 | 189,900 |
Central and Latin America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 66,300 | 66,700 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 29,900 | $ 26,800 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Company's Net Pretax Restructuring Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs, net | $ 6,072 | $ 1,871 |
CCS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs, net | 1,109 | 110 |
CMS [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs, net | $ 4,963 | $ 1,761 |
Restructuring Costs - Activity
Restructuring Costs - Activity within Liability Established for Restructuring Actions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring reserve liability | $ 33,024 | $ 33,024 | $ 37,089 | |
Beginning balance | 37,089 | |||
Additional charge (credit) recorded | 6,072 | $ 1,871 | ||
Ending balance | 33,024 | |||
Restructuring reserve, current | 20,850 | 24,480 | ||
Cost Alignment Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring reserve liability | 7,595 | 7,595 | 8,375 | |
Beginning balance | 8,375 | |||
Additional charge (credit) recorded | (117) | |||
Cash paid | (888) | |||
Consideration received | 3,656 | |||
Foreign exchange and other non-cash items | (3,431) | |||
Ending balance | 7,595 | |||
BNS Integration Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring reserve liability | 25,429 | 25,429 | 28,714 | |
Beginning balance | 28,714 | |||
Additional charge (credit) recorded | 6,189 | |||
Cash paid | (7,572) | |||
Foreign exchange and other non-cash items | 1,902 | |||
Ending balance | 25,429 | |||
Employee-Related Costs [Member] | Cost Alignment Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring reserve liability | 659 | 659 | 1,005 | |
Beginning balance | 1,005 | |||
Additional charge (credit) recorded | (4) | |||
Cash paid | (364) | |||
Foreign exchange and other non-cash items | 22 | |||
Ending balance | 659 | |||
Employee-Related Costs [Member] | BNS Integration Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring reserve liability | 25,429 | 25,429 | 28,714 | |
Beginning balance | 28,714 | |||
Additional charge (credit) recorded | 3,836 | |||
Cash paid | (7,140) | |||
Foreign exchange and other non-cash items | (19) | |||
Ending balance | 25,429 | |||
Lease Termination Costs [Member] | Cost Alignment Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring reserve liability | 6,936 | 6,936 | 7,370 | |
Beginning balance | 7,370 | |||
Additional charge (credit) recorded | 90 | |||
Cash paid | (524) | |||
Ending balance | 6,936 | |||
Fixed Asset Related Costs [Member] | Cost Alignment Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional charge (credit) recorded | (203) | |||
Consideration received | 3,656 | |||
Foreign exchange and other non-cash items | (3,453) | |||
Fixed Asset Related Costs [Member] | BNS Integration Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional charge (credit) recorded | 2,353 | |||
Cash paid | (432) | |||
Foreign exchange and other non-cash items | $ 1,921 | |||
Other Accrued Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, current | 20,850 | 24,480 | ||
Other Noncurrent Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, non-current | $ 12,174 | $ 12,609 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($)Facilities | |
BNS [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Recognized restructuring charges | $ 30,000,000 |
Cost Alignment Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Recognized restructuring charges | 88,700,000 |
Cash payments | 888,000 |
BNS Integration Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cash payments | $ 7,572,000 |
BNS Integration Restructuring Plan [Member] | United States [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Facility closure | Facilities | 2 |
BNS Integration Restructuring Plan [Member] | International [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Facility closure | Facilities | 1 |
Minimum [Member] | BNS [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additional pretax costs expected to be incurred to complete previously announced initiatives | $ 200,000 |
Cash payments | 17,000,000 |
Additional payments between 2017 and 2022 | 7,000,000 |
Minimum [Member] | Cost Alignment Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additional pretax costs expected to be incurred to complete previously announced initiatives | 1,000,000 |
Cash payments | 2,000,000 |
Additional payments between 2017 and 2022 | 6,000,000 |
Maximum [Member] | BNS [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additional pretax costs expected to be incurred to complete previously announced initiatives | 300,000 |
Cash payments | 18,000,000 |
Additional payments between 2017 and 2022 | 8,000,000 |
Maximum [Member] | Cost Alignment Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additional pretax costs expected to be incurred to complete previously announced initiatives | 2,000,000 |
Cash payments | 3,000,000 |
Additional payments between 2017 and 2022 | $ 7,000,000 |
Employee Benefit Plans - Pretax
Employee Benefit Plans - Pretax Amounts for Net Periodic Benefit Cost and Other Amounts Included in Other Comprehensive Income (Loss) for the Defined Benefit Pension and Other Postretirement Benefit Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
U.S. Pension Benefits Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1,620 | $ 1,625 |
Recognized actuarial loss (gain) | 236 | 169 |
Expected return on plan assets | (1,750) | (1,880) |
Net periodic benefit cost (income) | 106 | (86) |
Non-U.S. Pension Benefits Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,596 | 107 |
Interest cost | 1,751 | 1,313 |
Recognized actuarial loss (gain) | 28 | 1 |
Expected return on plan assets | (2,294) | (1,597) |
Net periodic benefit cost (income) | 1,081 | (176) |
U.S. Other Postretirement Benefits Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 7 |
Interest cost | 135 | 161 |
Recognized actuarial loss (gain) | (346) | (283) |
Amortization of prior service credits | (1,055) | (2,457) |
Net periodic benefit cost (income) | $ (1,265) | $ (2,572) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
U.S. Pension Benefits Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Company's contribution to defined benefit plans | $ 1 |
U.S. Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Additional contribution amount for remaining fiscal period | 8.2 |
Non-U.S. Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Additional contribution amount for remaining fiscal period | $ 8.2 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Stockholders Equity [Line Items] | |
Unrecognized compensation costs related to unvested stock options, restricted stock unit awards (RSUs) and performance share units (PSUs) | $ 81.9 |
Recognition period of unrecognized compensation costs | 1 year 9 months 18 days |
Incremental compensation cost resulted from modification | $ 1.6 |
Stock options vested and expected to vest, contractual term | 10 years |
Performance Shares [Member] | |
Stockholders Equity [Line Items] | |
Vesting period, year | 3 years |
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |
Stockholders Equity [Line Items] | |
Vesting period, year | 1 year |
Minimum [Member] | Stock Options [Member] | |
Stockholders Equity [Line Items] | |
Vesting period, year | 1 year |
Minimum [Member] | Performance Shares [Member] | |
Stockholders Equity [Line Items] | |
Number of shares issued on performance | 0.00% |
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |
Stockholders Equity [Line Items] | |
Vesting period, year | 3 years |
Maximum [Member] | Stock Options [Member] | |
Stockholders Equity [Line Items] | |
Vesting period, year | 5 years |
Maximum [Member] | Performance Shares [Member] | |
Stockholders Equity [Line Items] | |
Number of shares issued on performance | 150.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Equity-Based Compensation Expense Included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | $ 8,835 | $ 5,253 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | 1,192 | 699 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | 927 | 544 |
Selling, General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation expense | $ 6,716 | $ 4,010 |
Stockholders' Equity - Summar65
Stockholders' Equity - Summary of Stock Option Activity (Detail) - Non Qualified Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Beginning Balance | shares | 7,458 |
Shares, Granted | shares | 374 |
Shares, Exercised | shares | (262) |
Shares, Forfeited | shares | (195) |
Shares, Ending Balance | shares | 7,375 |
Shares, Exercisable Ending Balance | shares | 6,476 |
Shares, Expected to vest | shares | 894 |
Weighted Average Option Exercise Price Per Share, Beginning Balance | $ 8.81 |
Weighted Average Option Exercise Price Per Share, Granted | 24.94 |
Weighted Average Option Exercise Price Per Share, Exercised | 6.39 |
Weighted Average Option Exercise Price Per Share, Forfeited or expired | 5.73 |
Weighted Average Option Exercise Price Per Share, Ending Balance | 9.80 |
Weighted Average Option Exercise Price Per Share, Exercisable Ending Balance | 7.41 |
Weighted Average Option Exercise Price Per Share, Expected to vest | 26.99 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ 12.03 |
Aggregate Intrinsic Value, Exercised | $ | $ 0 |
Aggregate Intrinsic Value, Outstanding as of March 31, 2016 | $ | 135,004 |
Aggregate Intrinsic Value, Exercisable at March 31, 2016 | $ | 132,861 |
Aggregate Intrinsic Value, Expected to vest | $ | $ 2,133 |
Stockholders' Equity - Summar66
Stockholders' Equity - Summary of Exercise Price (Detail) shares in Thousands | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
$2.96 to $5.35 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | $ 2.96 |
Range of Exercise Prices Maximum | $ 5.35 |
Options Outstanding Shares | shares | 398 |
Weighted Average Remaining Contractual Life | 3 years |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 2.96 |
Options Exercisable Shares | shares | 398 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 2.96 |
$5.36 to $5.67 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 5.36 |
Range of Exercise Prices Maximum | $ 5.67 |
Options Outstanding Shares | shares | 591 |
Weighted Average Remaining Contractual Life | 5 years 10 months 24 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 5.57 |
Options Exercisable Shares | shares | 564 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 5.57 |
$5.68 to $8.54 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 5.68 |
Range of Exercise Prices Maximum | $ 8.54 |
Options Outstanding Shares | shares | 3,903 |
Weighted Average Remaining Contractual Life | 4 years 9 months 18 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 5.74 |
Options Exercisable Shares | shares | 3,903 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 5.74 |
$8.55 to $8.90 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 8.55 |
Range of Exercise Prices Maximum | $ 8.90 |
Options Outstanding Shares | shares | 1,101 |
Weighted Average Remaining Contractual Life | 4 years 4 months 24 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 8.62 |
Options Exercisable Shares | shares | 1,101 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 8.62 |
$8.91 to $23.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 8.91 |
Range of Exercise Prices Maximum | $ 23 |
Options Outstanding Shares | shares | 527 |
Weighted Average Remaining Contractual Life | 9 years 2 months 12 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 22.54 |
Options Exercisable Shares | shares | 490 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 22.85 |
$23.01 to $33.12 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 23.01 |
Range of Exercise Prices Maximum | $ 33.12 |
Options Outstanding Shares | shares | 855 |
Weighted Average Remaining Contractual Life | 9 years 2 months 12 days |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 28.09 |
Options Exercisable Shares | shares | 20 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 28.65 |
$2.96 to $33.12 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices Minimum | 2.96 |
Range of Exercise Prices Maximum | $ 33.12 |
Options Outstanding Shares | shares | 7,375 |
Weighted Average Remaining Contractual Life | 5 years 6 months |
Weighted Average Exercise Price Per Share, Options Outstanding | $ 9.80 |
Options Exercisable Shares | shares | 6,476 |
Weighted Average Exercise Price Per Share, Options Exercisable | $ 7.41 |
Stockholders' Equity - Summar67
Stockholders' Equity - Summary of Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) - Stock Options [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected option term (in years) | 6 years | 6 years |
Risk-free interest rate | 1.40% | 1.60% |
Expected volatility | 50.00% | 43.00% |
Expected dividend yield | 0.00% | 0.00% |
Weighted average exercise price | $ 24.94 | $ 30.76 |
Weighted average fair value at grant date | $ 12.03 | $ 13.25 |
Stockholders' Equity - Summar68
Stockholders' Equity - Summary of PSU Activity (Detail) - Performance Shares [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding and unvested, Beginning balance | shares | 175 |
Granted | shares | 268 |
Outstanding and unvested, Ending balance | shares | 443 |
Outstanding and unvested, Beginning balance | $ / shares | $ 30.76 |
Weighted average fair value at grant date | $ / shares | 24.94 |
Outstanding and unvested, Ending balance | $ / shares | $ 27.24 |
Stockholders' Equity - Summar69
Stockholders' Equity - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding and unvested, Beginning balance | shares | 1,567 |
Granted | shares | 1,589 |
Vested and shares issued | shares | (341) |
Forfeited | shares | (44) |
Outstanding and unvested, Ending balance | shares | 2,771 |
Outstanding and unvested, Beginning balance | $ / shares | $ 29.37 |
Weighted average fair value at grant date | $ / shares | 24.94 |
Vested and shares issued | $ / shares | 30.87 |
Forfeited | $ / shares | 28.22 |
Outstanding and unvested, Ending balance | $ / shares | $ 26.66 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Senior Payment In Kind Toggle Notes Due June 2016 [Member] $ in Millions | Apr. 27, 2016USD ($) |
Subsequent Event [Line Items] | |
Redemption of senior payment-in-kind toggle notes | $ 300 |
Redemption date, period end date | 2016-06 |
Cash charge related to redemption premium | $ 9.9 |
Debt issuance costs write-off | $ 3.5 |